Problems In And Improvement Strategies For Performance Audit In Guangdong Province

Performance auditing refers to the auditing party investigating and evaluating theeconomy, efficiency, effectiveness, fairness and environment of the audited party or project.Performance auditing has become the recent trend worldwide. In developed countries inEurope, performance audit accounts for over50%of the audit work conducted, and in theU.S.A, the number is even over80%. Therefore, performance auditing has become one of themost important measurements of vitality for a country or a region.National Audit Office of the People’s Republic of China (―NAO‖) pointed out in the―NAO12th Five-Year Audit Development Plan‖that we should promote performanceauditing on a full scale, establish a healthy management system for government performanceauditing, encourage improvement of government performance auditing level and set up asound responsibilities affixing system. Performance auditing has become popular among alllevels of auditing offices in China. Recently, the Guangdong government has played an activerole in exploring and carrying out new methods of performance auditing. By receivingquestionnaires from the21cities in Guangdong province on the current situation ofperformance auditing in Guangdong, this dissertation collected useful information, and foundout the main problems existing in Guangdong. The result shows that performance auditing hasnot been widely conducted in Guangdong, auditing offices are not adequately built, auditorsare not highly trained, and performance auditing is lack of guidance and evaluation system.This dissertation analyses the existing problems by referring to experiences ofperformance auditing in developed countries and the reality of Guangdong province.Countermeasures such as promoting a healthy environment for performance auditing, buildinga guidance and evaluation system, training the staff, establishing a performance auditingdeclaration-improvement-accountability three dimensions mechanism, are proposed. Thesecountermeasures are based on a full analysis of the current situation of performance auditingand the cause of problems in Guangdong, so they are considerable and targeted, and are alsouseful in promoting performance auditing in Guangdong.